We also do this, however teachers must be members of the PTO/PTA to get reimbursed. And yes we do require receipts - our treasurer would have a fit if we didn't!
We have the same problem, only our funds go into team accounts at school (not directly to the teachers), however I'm not sure this is exactly the correct process, either. On the one hand, we know it's being spent by the teachers on school-related items, but we still don't have control.
We gave $500 Office Depot gift cards to all of our teachers this year. Our accountant suggested this wouldne the easiest way to handle it from an IRS view.
We typically spend about $4,000 on the teachers on their Teacher Wish List. It's a big hit with them. We have a form they turn in or E-mail with specific information on what they want, how it's being used in the classroom, how much it costs, is there a cheaper alternative but why they want the more expensive one. We've never had one teacher not fill it out. We honor most requests and when I get them in, I put on a spread sheet and the principal must approve each one. Serves several purposes (1) sometimes she's already told them NO and they are trying to sneak around her (2) She has district funds that would cover said project and we can save money (3) we can brainstorm on the best way to pay for said requests.. some items we've gotten FREE . One teacher wanted an entire wooden kitchen set for her K5 classroom.. priced it would have cost us $1,000. One of our PTO board members mentioned their church just upgraded their classrooms and a nice set was sitting in storage. She checked with her Pastor.. Voila.. they donated it - The FULL set.. brand new not sure why it was replaced. Teacher was a happy one.. and we saved $1,000. They are sent an e-mail saying they are approved to buy XYZ they turn in receipt.. they get a check. We have a paper trail of what is actually spent. We can now give exact numbers and what we bought to our Parents at the annual meetings. It is bringing in more donations b/c the parents feel we are running an effective program. WE ARE! Now, if the teacher can't float the amount.. the principal will place the order through the school and we then get the bill from the school. Again.. that paper trail. Very important! The teachers now know the routine and are greatful for all we do for them. They are supporting our events, advertising for us, working the events... They know we do all of this for them and their students!
We ran into the same issue and decided to give the teachers a gift certificate to our local teacher store instead. This way we knew they were using it for their classroom, they didn't have to turn in receipts and we supported local businesses all at the same time. It's worked great!
One other thing, the process is a reimbursement, not a cash advance. They don't get the funds without turning in the receipts.
It's pretty easy to set up a process. Check around on the Forums, there are some good ideas from the past. Definitely set a firm deadline and make the procedure as easy as possible. A simple form with a subtotal at the bottom, receipts stapled (or maybe a special pre-printed envelope). One request each; so they need to wait until the reach the $300 if they want the full amount.
I forgot another key item - if you check the teacher's employee ethics rules, I sincerely doubt they are ALLOWED to accept cash gifts, which is what they are doing now. It could literally cost them their jobs. Reimbursement is a whole other story.
